Although the signs are still tentative, I’m seeing growing evidence of a turn in oil, natural gas and related stocks. The main catalyst: Accelerating declines in production are overtaking the pace of decline in demand. Meanwhile, there are signs of stabilization in energy demand, particularly in the developing world. Read More
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The refinery, located roughly 25 miles outside San Francisco, covers nearly 3,000 acres. In fact, Richmond is the largest refinery in the San Francisco Bay Area, with total throughput capacity of 240,000 barrels of oil per day and is Chevron’s third-largest wholly owned facility. It’s also among the oldest in the country--it opened more than a century ago, in 1902. Read More
Selling in the broader markets picked up steam as President Obama announced his preliminary budget proposal. Let's take a look at the outlook for oil and gas prices, the potential impacts of the Obama budget proposal, and how to profit amid this extreme bout of stock market volatility. Read More
Neither ultra-low interest rates nor the fastest growth in money supply in a generation form the basis for a durable economic recovery. We absolutely need to see strength coming from other corners of the economy. Read More
Amid the gloom, there are a few positive signs. First, the stock market historically has bottomed out months before the economy troughs. While the major averages are at multiyear lows, market breadth has improved markedly--45 percent of the stocks in the S&P 500 are trading higher than they were in late November, as are 40 percent of the stocks in the S&P 500 Energy Index. Read More
With passage of the USD787 billion American Recovery and Reinvestment Act, Washington, DC has supplanted New York City as the nation’s key financial center. The latest news on the economic stimulus package and the Treasury Dept’s financial stabilization plan has been the most important driver for the stock market so far this year. With regard to energy-focused investments, there are two areas of potential impact: the economy as a whole and companies that will benefit from the direct flow of money into energy-related research and development. Read More
My suggestion for playing the current energy market is to focus on four key themes: income-producing securities, integrated oils, high-quality, gas-focused exploration and production firms; and beaten down value names in the oil services space. Read More
We’ve covered the nuclear industry in the past in The Energy Strategist and made some gains in nuclear-oriented stocks back during the big bull market in the group in 2006 and 2007. Fortunately, we recommended taking some profits ahead of the massive decline in the group in late 2007. The sector is depressed, and some old TES favorites are back on the bargain rack, even as uranium prices tick higher again. It’s high time we revisit the theme. Read More
There are signs the broader market and major energy indexes are approaching a key low, setting up for a major rally that will kickoff no later than mid-2009. We’re already seeing a marked improvement in performance in the past few weeks, particularly for our three key themes for the New Year: high income potential; natural gas over oil; and integrated Super Oils. Read More
Oil and natural gas prices are at unreasonably depressed levels right now, and related stocks are pricing in an extremely pessimistic outlook for commodity prices. Read More